Bloomberg reported, citing a person familiar with the conversations, Fed officials are warning banks that rising levels of high-risk, high-yield loans on their balance sheets may require more capital held against them.

According to data compiled by Bloomberg, banks have arranged about $411 billion of leveraged loans sold to investors this year, compared with a record $696 billion in all of 2013.

Bloomberg said, according to a Barclays research report, that “covenant-lite” loans, which lack requirements that can help protect lenders, are on pace to exceed 70% of total issuance this year.

To view the full Bloomberg report, click here.